EV Startups That Failed: $10B+ in Burnt Capital
Analysis of electric vehicle and automotive startup failures. From Fisker to Lordstown — why building cars is the hardest startup category.
22+
Failed
$41B
Lost
90%
Fail Rate
5.5 years
Avg to Fail
Failure Reasons in This Industry
Common Failure Patterns
Manufacturing Hell
Elon Musk coined "production hell" — the gap between building a prototype and mass production is where most EV startups die.
SPAC Disasters
2020-2021 SPAC boom took EV companies public before they had revenue. Most lost 90%+ of value within 2 years.
Capital Intensity
Building cars requires $2-5B minimum. Most startups underestimate capex by 3-5x and run out of money mid-production ramp.
Failed Startups (22)
Three Arrows Capital
Excessive Leverage · Concentrated, leveraged bets in volatile markets with borrowed funds create casc…
$0 (hedge fund)
2012–2022
Rivian (Value Destruction)
Production Scaling & Cash Burn · Rivian IPO'd at $150B — briefly worth more than Ford and GM. The stock fell 90% …
$10B+
2009–2024
Argo AI
Massive Capital Burn Without Revenue · $3.6B from Ford and VW wasn't enough to make autonomous driving commercially via…
$3.6B
2016–2022
Bird
Unit Economics & Regulation · Hardware-as-a-service in public spaces faces vandalism, regulation, and unit eco…
$776M
2017–2023
Opendoor
Housing Market Reversal · iBuying houses with algorithms works in rising markets but creates massive losse…
$1.9B
2014–2024
Hopin
Post-Pandemic Demand Collapse · Virtual events exploded during COVID but demand evaporated when in-person return…
$1.6B
2019–2024
Arrival
Unproven Microfactory Model · The "microfactory" concept for EV manufacturing was unproven at scale. Building …
$1.3B
2015–2024
Lordstown Motors
Fake Pre-orders & Execution · Fabricating 100,000 pre-orders for an EV truck that doesn't exist yet is securit…
$1.1B
2018–2023
Proterra
Cash Burn & Scaling Failure · Electric bus manufacturing has thin margins and long sales cycles. Government pr…
$1B+
2004–2023
Fisker
Execution & Cash Flow · Automotive manufacturing requires extreme precision in execution. Software issue…
$1B+
2016–2024
Lilium
Technical & Regulatory Barriers · Building electric aircraft that take off vertically is extraordinarily hard. Eve…
$1B+
2015–2025
Nikola Motor
Fraud & Execution Failure · Nikola's founder rolled a truck downhill to fake a demo video. The SPAC hype mac…
$1B+
2014–2024
Better Place
Wrong Timing & Over-ambition · Building infrastructure ahead of demand is extremely capital-intensive. Battery …
$850M
2007–2013
Divvy Homes
Housing Market Reversal · Rent-to-own fintech models collapse when interest rates spike and home prices de…
$735M
2017–2024
Vroom
Operational Losses & Market Shift · Online used car sales require operational excellence that most tech companies un…
$700M
2012–2024
Veev
Execution & Cash Burn · Factory-built housing sounds great in theory but faces zoning, logistics, and qu…
$647M
2008–2023
Canoo
Cash Burn & No Revenue · Another SPAC-era EV startup that burned through $600M without achieving meaningf…
$600M
2017–2024
Kitty Hawk
Regulatory & Technical Barriers · Flying cars have been "5 years away" for decades. Even Larry Page's fortune coul…
$600M+
2010–2022
Electric Last Mile Solutions
SEC Investigation & Leadership Fraud · Another SPAC EV fraud: co-founders allegedly bought shares below the IPO price b…
$380M
2020–2022
Color Health
Post-Pandemic Revenue Collapse · Pivoting from genomics to COVID testing generated temporary revenue but left no …
$278M
2013–2024
Eko
Interactive Video Never Found Mass Audience · Interactive "choose your own adventure" video raised $160M from Hollywood studio…
$160M
2010–2024
Beepi
Cash Burn & Execution · Peer-to-peer car selling: expensive inspections, transport, and a $300K/month CE…
$148M
2013–2017
How to Succeed in This Industry
- ✓Secure $3B+ in committed capital before starting production — you will need more than you think
- ✓Start with a high-margin vehicle (luxury/commercial) to fund mass-market development
- ✓Partner with established manufacturers for production rather than building greenfield factories
- ✓Focus on software and battery innovation as differentiators, not just vehicle design
Frequently Asked Questions
Why do EV startups fail?
EV startups fail primarily due to manufacturing complexity (it's the hardest product to mass-produce), extreme capital requirements ($2-5B minimum), long time-to-revenue (5-7 years), and competition from established automakers who are now electrifying their lineups.
How many EV startups have failed?
Over 20 major EV startups have failed or are in severe distress since 2020, including Fisker, Lordstown Motors, Arrival, Canoo, and Lilium. The 2020-2021 SPAC boom brought many underfunded EV companies to public markets too early.
Is Tesla the only successful EV startup?
Tesla is the only EV startup to achieve sustained profitability and mass production. BYD (China) has also succeeded but started as a battery manufacturer. Rivian and Lucid are still operating but burning cash.
What makes EV startups so capital-intensive?
Factory construction ($1-3B), tooling ($500M+), crash testing & safety certification ($100M+), supply chain establishment, and the need to produce thousands of units before reaching break-even volume.